Andersen guilty in Enron scandal

Saturday 15 June 2002 23:00 BST

ARTHUR Andersen, the accountancy firm embroiled in the Enron scandal, has been convicted of obstructing justice.

A jury in Houston, Texas, decided that the destruction of paper and computer files last autumn was not 'routine housekeeping', but an attempt to thwart federal regulators investigating the collapsed US energy trader Enron.

Enron became the world's biggest bankrupt with losses of £55bn last December. Prosecutor Andrew Weissman said the case boiled down to a simple principle: 'When you expect the police, you don't destroy evidence.' The outcome is expected to bolster the efforts of prosecutors investigating Enron's collapse.

Andersen, which is based in Chicago, faces up to five years of probation and a fine of up to $500,000 (£340,000). The sentence will be delivered in October and the company could also be fined up to twice any gains or damages the court determines were caused by the firm's action.

This was the first criminal trial to emerge from the scandal. Andersen has lost hundreds of clients and partners. The firm and its employees are also likely to face more prosecutions.